Qihoo commercially launched its own monetization system in Dec and started to build its agency network. On the other hand, it is also testing Google Adsense on its search result pages in Jan. To our understanding, both internal and external monetization systems will co-exist with each other and be in charge of different ad keywords or ad inventories for a while, before Qihoo can improve its ad keyword matching technology and establish a sizable sales network. We expect both systems to offer similar economics for the company as Google’s sharing of sales could be offset by Adsense’s better matching technologies.

Qihoo could also benefit from new revenues from mobile gaming, the analysts wrote. Qihoo’s shares have dropped 0.4% to 32.12 today.

About Emerging Markets Daily

Emerging markets have been synonymous with growth, but the outlook for individual nations is constantly changing. Countries from Brazil and Russia to Turkey face challenges including infrastructure bottlenecks, credit issues and political shifts. The Barrons.com Emerging Markets Daily blog analyzes news, data and research out of emerging markets beyond Asia to help readers navigate the investment landscape.

Barron’s veteran Dimitra DeFotis has been blogging about emerging market investing since traveling to India and Turkey. Based in New York, she previously wrote for Barron’s about U.S. equity investing, including cover stories and roundtables on energy themes. Dimitra was among the first digital journalists at the Chicago Tribune and started her career as a police reporter at the Daily Herald in the Chicago suburbs. Dimitra holds degrees from the University of Illinois and Columbia University, where she was a Knight-Bagehot Fellow in the business and journalism schools.